BayWa re Energy Ventures is a relatively new Munich-based venture capital firm. The subsidiary of the BayWa Group invests in energy startups. We were able to ask Ulrich Seitz, Managing Director of BayWa re Energy Ventures, a few questions.
Please introduce yourselves briefly.
BayWa re Energy Ventures was founded in April 2018 as a venture capital company of BayWa re, a global renewable energy company. Our team focuses on providing financial and operational support to promising startups across the energy sector. We combine entrepreneurial experience and speed while offering the security and stability of a corporate entity—backed by the financially strong BayWa AG. We see ourselves as equal partners, working alongside the founders to implement our corporate motto "rethink energy."
What is the role of BayWa re Energy Ventures within the BayWa Group?
Our most important task is to identify and develop new business models and markets. By investing in young, innovative companies, we aim to identify new trends in the energy industry early on and develop them further. This way, we aim to learn as much as possible about current market developments. Regarding exits, we are open to all channels, although BayWa re itself could also be an exit channel.
“We are open to all promising young companies in the energy sector.”
Where is your investment focus?
We are generally interested in young companies from the entire energy sector, especially startups with innovative ideas for digital solutions, storage, and e-mobility. The vision behind the business model is also important to us: The startup's stated goal should be to take a leading position in a sector of the energy industry, even in the long term, and to make a substantial contribution to solving current and future problems.
If the basic requirements are met, we plan to invest in up to five such startups annually. We are particularly interested in startups where we can initially invest as lead or co-investors with an initial investment of one to five million euros per year. Larger investments are also possible in later rounds.
At what stage do startups ideally approach you?
What is particularly interesting for us is the early development phase after the proof of market, i.e. when the product has already received initial positive feedback from the market.
What kind of startup would you never invest in?
In principle, we are open to all promising young companies in the energy sector. However, there are some situations in which we decline to invest. For example, we consider it a negative factor if we get the feeling that the entrepreneurs themselves aren't fully committed to their product. We also place great value on human interaction. If we notice that the chemistry isn't right or the founding team has internal differences, that's a clear negative for us.
“There is no substitute for personal contact”
How do founders get onto your screen?
It is definitely helpful if a startup is supported by network partners such as BayStartUP or Ecosummit is recommended. Furthermore, it doesn't hurt to have meaningful documents at hand at varying levels of detail during the initial contact. This way, if the founder is interested, they can respond quickly and flexibly to our information needs at this point.
Nevertheless, my motto is: There's no substitute for personal contact. If we're interested in a company, we usually pick up the phone and start a conversation, followed by a visit and a personal meeting.
This is what the energy VC’s offices look like (photos: BayWa re Energy Ventures):
Do startups have to be afraid that you will interfere too much?
No! For us, it's crucial that young companies remain independent in their decisions and maintain their agility and flexibility. This gives them the freedom to adapt their business model as needed, makes them attractive to co-investors in the long term, and keeps various exit channels open. As an exit-oriented VC firm, we are therefore generally only interested in minority investments without any operational influence. Where possible and necessary, we are of course happy to support startups with our industry expertise, infrastructure, and sales power – but only if it makes sense and is desired by the founders.
The trend of the year is…?
There is a lot going on in the startup scene at the moment, which is why, in my opinion, the There is a trend of the year. The most important development areas currently influencing all industries include blockchain, predictive maintenance, and artificial intelligence. In the energy sector, these are primarily reflected in business models for asset management of wind and photovoltaic parks, battery management systems, charging infrastructure for electric vehicles, and the smart grid and smart home.
What is the Munich startup scene doing right? What's missing?
In my opinion, startups in Munich have a significantly stronger B2B focus than in Berlin. Furthermore, the infrastructure and access to investors and startup networks are excellently developed here. This provides a good basis for the emergence of new ideas and profitable collaborations, especially in this area. B2C activities are significantly less developed and are very fragmented here in Munich. I would like to see one or two central contact points in the future.
Who do startups approach when they want to talk to you?
Contacting us is straightforward and can be done via the Website, via email, or directly by phone. After a brief introduction, we'll be happy to schedule an initial in-depth conversation to determine if we're a good fit. In many cases, contact is also established through our network partners or through direct interaction at trade fairs or industry events.
